The following table shows hypothetical monthly exchange rates for the Canadian dollar and the euro, as well
Question:
The following table shows hypothetical monthly exchange rates for the Canadian dollar and the euro, as well as the standard deviation of the percentage changes for each currency.
Use the table to select the percent change from May 1 to June 1 in the Canadian dollar exchange rate and the euro exchange rate.
Month | Value of the Canadian Dollar | Monthly Percent Change in Canadian Dollar Value | Value of Euro | Monthly Percent Change in Euro Value |
---|---|---|---|---|
(US Dollars per Canadian Dollar) | (US Dollars per euro) | |||
January 1 | $0.62 | $1.14 | ||
February 1 | 0.63 | 1.61% | 1.18 | 3.51% |
March 1 | 0.64 | 1.59% | 1.22 | 3.39% |
April 1 | 0.66 | 3.13% | 1.19 | -2.46% |
May 1 | 0.67 | 1.52% | 1.18 | -0.84% |
June 1 | 0.65 | 1.21 | ||
July 1 | 0.66 | 1.54% | 1.25 | 3.31% |
Standard Deviation | 2.08% | 2.57% |
The percentage change in the Canadian dollar from May 1 to June 1 represents in the value of the Canadian dollar.
In this example, the value of the was more volatile over the entire time period.
Microeconomics
ISBN: 978-0321866349
14th canadian Edition
Authors: Christopher T.S. Ragan, Richard G Lipsey